GettingIn Touch

With The Work That Matters

© 2017, PPAI All Rights Reserved

awareness and improve industry perception of promotional products. PPAI has launched a new Fellows Program designed to recognize and thank influential individuals who have actively supported the industry through their personal involvement. PPAI Fellows further contribute to a culture of engagement, involvement, and leadership throughout the Association. We are honored to recognize these leaders and teachers.

By driving meaningful member engagement, advocating for the industry,developing strategic foresight, and managing an efficient and progressive organization, PPAI and the industry have a very bright future for years to come.

Respectfully,

Paul Bellantone, CAE President and CEO

Tom Goos, MASChair of the Board

On behalf of the PPAI Board of Directors, we are pleased to submit the Annual Report of the Promotional Products Association International for the year ending December 31, 2016.

The Association saw a dramatic increase in membership, ending the year with more than 14,300 member companies. Thanks to this increase, PPAI is now able to provide more member benefits, professional development, advocacy and outreach to more industry professionals than ever.

PPAI’s core mission is to continue to grow and protect the promotional products industry and enhance the professionalism and success of its members. This year we developed a new strategic plan that, while continuing to focus on growing and protecting the industry, will enhance the nature of PPAI’s activi-ties from transaction-based interactions with its member companies by adding relationship-based engagement with individuals and user groups. The 18-month development process included member and industry research, focus groups and surveys to help identify the short- and long-term challenges and opportunities faced by the industry. The new strategic plan ensures PPAI will develop deeper relationships with our members while remaining the trusted leader delivering essential knowledge, resources, and community to ensure the success of our members and the industry.

The year kicked off with the Best. Expo. Ever. The PPAI Expo cemented its status as the industry’s largest and most well-attended promotional products trade show and was the FIRST and ONLY major industry trade show in which all exhibitors, sponsors and advertisers achieved the Product Safety Aware status. The PPAI Expo is now larger than the next four industry events combined and draws nearly three times more distributor attendees than the next three largest industry shows.

PPAI is also preparing for the future by investing in programs targeting Generation Y and launching a university scholarship pilot program. During Advertising Week in New York City, we launched one of the largest and most exciting initiatives yet—the Get In Touch! campaign, a five-year, multimillion-dollar branding initiative targeting advertising buyers to increase 2

GettingIn Touch

With The Work That Matters

PPAI believes that a collaborative and transparent Association is part of our responsibility to those we serve. It is important for the Association to maintain and continue to grow membership while delivering exceptional member care. In 2016, we achieved the following:

Growing The CommunityIncreased membership to 14,338, increasing the overall number of member

companies we represent by 22 percent while maintaining a retention rate of over 90 percent.

Launched a new SAGE agreement, resulting in an increase in distributor membership of more than 3,000. Streamlined PPAI Affinity Programs to provide a select number of member benefits that bring the highest quality and best value to member companies that choose to take advantage of the programs offered. Introduced the PPAI Associate program, which gathers the product safety and government relations contacts from industry companies listed in our directory, to improve our communications to professionals of any future recall and/or advocacy efforts affecting the industry.

MembershipSnapshot

Member Category

Distributors

Suppliers

Branch

Business Services

International Distributors

Multi-line Representatives

International Suppliers

TOTAL

12,156

1,618

236

110

95

62

61

14,338

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Trade ShowsLike No Other

PPAI trade shows are known throughout the promotional products industry for being high-caliber and high-quality experiences. With strong industry recognition, PPAI trade shows continue to play a powerful force in the visibility of PPAI.

The PPAI Expo Total attendance

Distributor personnel in attendance

Distributor companies attending

Booths

Exhibiting companies

Buyers in attendance

RPI co-located its annual conference with brand.

Expo East Total attendance

Promotional professionals in attendance*

Distributor personnel in attendance

Distributor companies attending

Total booths in show including ISS*

PPAI Booths

Exhibiting companies

*Co-located with Imprinted Sportswear Shows

19,429

11,598

4,365

3,186

1,324

164

5,695

4,886

1,748

809

765

321

265

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AdvancingExcellencePPAI Professional Development continues to enhance and expand programs

designed to help members remain competitive in an increasingly fast-paced business environment. Through the use of online education, live events and certification, members have all the tools and resources necessary to achieve their professional goals.

PPAI Industry Certification 77 individuals were awarded a certification in 2016. The number of people recertifying their designation increased 30 percent over 2015; 64 percent over 2014. 728 hours of education were reviewed and approved for PPAI certification credit.

Live And Online Education

22,539 credits were earned by attendees through PPAI online education and live educational events.

PPAI offered 290.5 educational credits via online education and live events, a 20-percent increase over 2015. Eight live events were offered: Women’s Leadership Conference, North American Leadership Conference, Technology Summit, Product Responsibility Summit, SAGE Show, The PPAI Expo, Expo East, and a supplier-specific program. 56 live webinars were hosted Women’s Leadership Conference saw its first sold-out program in the histo ry of the event with 160 attendees. Paid online education sessions in 2016 produced the highest revenue and registration in the history of the program.

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Awards & RecognitionPPAI continued to celebrate the successful collaboration of our industry professionals with a wide range of recognition programs in 2016.

Awards Committee volunteers emceed and presented more than 170 awards during the Annual Awards Presentation and Reception held at the House of Blues.

Honored during the Chairman’s Leadership Dinner were Bruce Felber and Teresa Moisant, MAS, Distinguished Service Award Recipients; Mark Gilman, CAS, the H. Ted Olson Humanitarian Award Recipient; and G. Stephen Slagle, CAE, the 80th inductee into the PPAI Hall of Fame.

A new program recognizing historical industry contributions was unveiled during the Chairman’s Leadership Dinner in 2016. The Promotional Products Pioneers program was introduced to capture the industry’s rich history of vision, drive, innovation, character and leadership. Included in the inaugural chapter were: Norman Cohn, Forest P. Gill, Frank Krasovec, Norm Stern and Ralph B. Thomas.

In the annual PPAI Member Milestone presentation, 12 companies were recognized in celebration of their 50 years of ongoing member support; they were: A. Dean Watkins Company East; ADG Promotional Products; Advertising Accents, Inc.; Ball Chain Manufacturing Co., Inc.; A.T. Cross Co.; Gemaco, Inc.; Lipic’s Inc.; Paulich Specialty Co., Inc.; SAMCO Line; Sanatex Corporation; SELCO; and Tee Pee Advertising Co.

Recognizing Excellence

VolunteersStep Up

Ongoing outreach continues to keep volunteers engaged and solicit timely feedback on overall volunteer experiences and opportunities for more than 700 generous, industry volunteers.

The new PPAI Fellows Program, rolled out in 2016, recognizes industry individuals who have continuously supported the industry through personal involvement and who have contributed to a culture of rich volunteer engagement. Over 1,000 individuals were welcomed to the inaugural PPAI Fellow class in 2016. PPAI Fellows enjoy a unique level of benefits befitting their ongoing support of the Association.

The PPB Volunteer of the Month program in 2016 recognized: Larry Whitney; Phil Martin; Mary Dobsch; Karie Cowden; Ira Neaman; Bill Smith; Nikki Stella; Marc Held; Andrew Spellman; Peter Zeiger, CAS; and the retiring board and committee chairs, liaisons and member volunteers.

The Shared Volunteer Program expanded and was used by the following regionals in 2016: Carolinas Association of Advertising and Marketing Professionals (CAAMP); Gold Coast Promotional Products Association (GCPPA); Michigan Promotional Professionals Association (MiPPA); Northwest Promotional Marketing Association (NWPMA); Promotional Marketing Association of Northern California (PMANC); and Rocky Mountain Region Promotional Products Association (RMRPPA). Through this program, PPAI volunteers supported regional initiatives by participating in a variety of much-needed volunteer tasks.

PPAI continues to conduct an annual review of committee mission statements and job descriptions during face-to-face meetings at Expo as well as a standardized review process for retiring board liaisons, retiring committee chairs, retiring committee members and staff liaisons. Annual training with committee chairs is conducted during Leadership Development Week each year to ensure appropriate and timely volunteer experiences for all volunteers.

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Enhancing The Network

Areas of content development include understanding how to connect with and engage Millennial staff to ensure you bring out theirtrue potential. Best practices are identified and shared with industry leaders. A range of content is presented to the industry in a wide range of formats including blogs, webinars, live speaking engagements and online content. Collegiate outreach, community diversity initiatives and intern programs are expected components of this developing program. Two stand-alone events were held in 2016; branded SPARK, these events target emerging industry young professionals.

Diversity DevelopmentThis new program introduced in 2016 provides a variety of strategic programs and messaging, both inward and outward, focusing on the changing industry and buyer demographics affecting our industry.

Cultivating Diversity

Regional RelationsPPAI continues its focus on engaging the 27 regional associations through a variety of programs and initiatives. Each is designed to provide valuable dialogue, training and information exchange that benefit PPAI, the regional boards and the industry at large.

The 17th annual RAC Leadership Development Workshop welcomed more than 150 regional board volunteers and executive directors for a three-day intensive workshop designed to prepare each attendee for board service and regional resource management.

The Donna Hall Memorial Grant, established to provide educational funds for the benefit of the regional executive directors, was awarded to Jonathan Riegel with SAAGNY.

The PPAI RAC Volunteer of the Year award was presented to George Jackson with TRASA and Ted Dennison with HPPA.

The Promotional Products Disaster Recovery Foundation (also known as the Business Recovery Fund), a separate 501(c)(3) organization administered by trustees from the regional associations, distributed $5,500 in funds to qualified applicants in need of assistance.

PPAI is committed to ensuring the promotional products industry’s voice is strong and representative of all stakeholders—distributors, suppliers, multi-line representatives and business service providers. We continue to involve members in our advocacy efforts while driving industry corporate and product responsibility and compliance through education and awareness.

Product Safety Aware For the first time as part of the Association’s Product Responsibility program, all exhibitors, advertisers and sponsors participating in The PPAI Expo were Product Safety Aware.

Product Responsibility Summit The sixth annual Product Responsibility Summit received outstanding reviews and a host of compliments from a record-setting number of attendees. Two keynotes were delivered by CPSC Commissioners Robert Adler and Joseph Mohorovic. New event compliance binder addressed all five pillars of product responsibility: product safety, environmental sustainability, social responsibility, supply chain security and quality control.

Focusing On Product

Responsibility

TakingThe Lead

L.E.A.D. Nearly 80 professionals held more than 250 meetings with lawmakers during the seventh annual Legislative Education and Action Day in Washington, D.C. One third of L.E.A.D.ers were first-time attendees. Two recipients of The PPAI Legislator of the Year Award were recognized: Rep. Steve Chabot (R-OH) and Rep. Greg Walden (R-OR).

L.E.A.D. Local A state-based grassroots outreach bringing together PPAI staff with industry leaders and regional associations to speak with state legislators about the promotional products industry. This year L.E.A.D. Local expanded into New York, Michigan and Minnesota.8

PPAI publications provide members with current trends, profiles, research, news and events designed to help them make informed business decisions. PPB celebrated its 40th year with a tribute to its rich history and an advertiser showcase in the August issue.

The magazine unveiled a new, modern logo and updated design in September.

PPB saluted the industry’s best throughout the year in its popular series targeting Best Multi-Line Reps, Greatest Companies To Work For, Rising Stars, Best Bosses, Service Superheroes and Powerful Partners.

It was a winning year as PPB brought home four awards for editorial excellence.

PPB’s circulation reached a record of nearly 15,000 monthly subscribers.

Working together, Promo Marketing and PPB published four print supplements focused on Millennials, product safety and technology.

The TrustedSource

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DeliveringOur Message

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MarketingFocused on marketing all PPAI products and services including all major events (trade shows & live education), producing positive results.

Complete redesign of PPAI.org (released in 2017);PromotionalProductsWork.org and GetInTouchAdvertising.com.

ResearchReleased findings from the 2015 Distributor Business Survey (updated from 2011) and the 2016 Buyer Study (updated from 2014).

Completed the 2017 Consumer Study (updated from 2013 and released in 2017).

Worked to modernize report styles, making them more user-friendly (infographic style) and expanded data collection methods, introducing monthly digital polls.

Public Relations & Buyer OutreachPPAI launched Get In Touch!®, the industry branding campaign,at Advertising Week in New York.

Conducted buyer outreach: AMA Symposium for the Marketing of Higher Education, AMA Annual Conference, AMA NonProfit Conference, AMA International Collegiate Conference and PRSA.

Hosted media from around the world during The PPAI Expo.

Entered Promotional Products Work! and Get In Touch! licensing agreement with Australasian Promotional Products Association (APPA).

Technology is now at the core of our daily business activities, and Information Technology is constantly learning how to better use technology to serve our members.

Technology SummitThe Technology Summit offers a wealth of knowledge to attendees and creates great networking opportunities for IT professionals in the promotional products industry. Over 100 technology leaders attended the event in San Francisco in 2016. Working in conjunction with the PPAI Technology Committee, Technology Workgroup and PPAI Professional Development, the PPAI Technology Summit continues to grow.

Attendees networked and engaged in sessions covering cybersecurity, B2B integration tools, big data, legal issues, ERP systems, technology tips, project management, website design and optimization and future technology.

CybersecurityThis year, PPAI security systems, including virus control, spam control, firewall, VPN and backup tools, were all replaced with new technology solutions to ensure a higher degree of enterprise protection.

WebsitesIT, working in conjunction with internal marketing teams and a web design group, was heavily involved in the development, execution and launch of key website initiatives, including: Promotional Products Work! website www.promotionalproductswork.org Get In Touch! campaign www.getintouchadvertising.com

Promotional Products Association International website www.ppai.org

Info

rma

tion

Sha

ring

2.0

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Bronze Level$12,000 pledge

Carolinas Association of Advertising and Marketing Professionals (CAAMP)The Legacy GroupThe Vernon Company

Silver Level$30,000 pledge

Prime ResourcesCorporation

Promotional Products Education Foundation achievements for 2016:

Cumulative college scholarship awards went over the $1.5 million mark with the 2016 awards of $150,000 to 102 students.

The PPEF Glen Holt Scholarship Golf Invitational, the Branch Out & Give Tree, and PPEF’s Live Auction raised net proceeds of over $58,000 for the scholarship fund during The PPAI Expo 2016.

Four new named scholarships were established to memorialize or honor members, raising $65,000: Maureen & Thomas Dugan Scholarship Jack & Marty Nadel Scholarship Promotional Products Association Southwest (PPAS) Scholarship Bill Schmidt, Sr. Scholarship

Eight industry companies, organizations and individuals pledged $90,000 in donations through PPEF’s Tomorrow Fund:

Iron Level$6,000 pledge

Lori BauerBudgetcard Inc.Dana FloydChristine Lovell

PPAI team members donated countless hours of time, thousands of dollars in funds and goods to the following community and charitable organizations:

Irving Cares – More than 10,000 pounds of food and cash donations

Irving Humane Society – Pet supplies and cash donations

PPEF – Scholarship donations

Scottish Rite Hospital – Handmade bracelets

Holiday cards for troops

Irving Police and Fire – Blue Christmas toys and cash

Educating For The Future

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PPAI Community Service

PPAI is fully accountable for the integrity and objectivity of the financial information contained in the Annual Report. The accompanying financial statements have been prepared on an accrual basis of accounting as required by generally accepted accounting principles, applying informed judgments and estimates where appropriate.

PPAI maintains a system of internal accounting controls that provides reasonable assurance that the assets are safeguarded and transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles.

The Executive Committee of the PPAI Board of Directors is responsible forrecommending to the board of directors the independent accounting firm to be retained for 2017. The vice chair of financial services meets annually with the

independent auditors, with the executive vice president and the director of finance and administration, as well as PPAI management, to review accounting, auditing, internal accounting controls and financial reporting matters. Both the executive committee and board of directors have free access to the auditors.

BDO, USA, LLP, independent certified public accountants, have audited PPAI’s 2016 financial statements and issued an unqualified opinion. Management has made available to BDO, USA, LLP all the Association’s financial records and related data, as well as the minutes of the board of directors’ meetings.

Paul Bellantone, CAE President and CEOPromotional Products Association International

Irving, Texas July 2017

Front Row (L/R): Brittany David, CAS, Kim Newell,Rick Brenner, MAS+, immediate past chair of the board, Mary Jo Tomasini, MAS+, chair-elect of the board, Tom Goos, MAS, chair of the board, Dale Denham, MAS+, Paul Bellantone, CAE, president and CEO

Back Row (L/R): Norm Hullinger, CAS, Larry Cohen, Perry Wehrle, CAS, Scott Hareid, RAC delegate, Lee Strom, Cory Halliburton, Association General Counsel

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16,237,883

3,215,317

19,453,200

518,480

518,480

5,914,846

$ 6,433,326

$ 9,593,384

8,476,071 1,094,207

569,149 180,150 88,303 33,107

(67,650) 4,959

19,971,680

Years ended December 31,

Promotional Products Association InternationalStatements of Activities

Unrestricted Revenue: Trade shows Membership services Publications Professional development Public affairs Membership engagement Regional relations Investment income (loss) Other income

Total unrestricted revenue

Unrestricted Expenses: Program expenses: Trade shows Membership services Publications Professional development Public affairs Membership engagement Regional relations Business development Industry promotion Technology Volunteer administration

Total program expenses

General and administrative expenses

Total unrestricted expenses before strategic plan expenses

Change in unrestricted net assets before strategic plan expenses

Strategic plan expenses

Change in unrestricted net assets

Unrestricted net assets at beginning of year

Unrestricted net assets at end of year

$ 9,874,429 8,820,837 1,329,190 633,643 169,477 89,904 35,947

233,891 3,473

21,190,791

3,620,026 5,691,766

910,695 1,355,699

621,840 542,530 486,247

1,097,604 1,321,086 1,095,822

273,627

17,016,942

3,552,321

20,569,263

621,528

690,255

(68,727)

6,433,326

$ 6,364,599

3,696,036 5,156,337

872,371 1,105,590

670,022 548,706 461,843

1,182,183 1,341,110

1,028,524 175,161

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2016 2015

GettingIn Touch

With The Work That Matters

Commitments and contingencies Net assets: Unrestricted: Undesignated Board designated Designated for strategic plan implementation Designated for capital improvements Designated for contingencies Total net assets Total liabilities and net assets

Promotional Products Association InternationalStatements of Financial Position

Assets: Current assets: Cash and cash equivalents Investments Accounts receivable, net Prepaid expenses Accrued interest receivable Total current assets

Investments, net of current portionProperty and equipment, net Total assets

Liabilities and Net Assets: Current liabilities: Accounts payable Accrued expenses Unearned revenue Total current liabilities

Unearned revenue, net of current portion

Total liabilities

$ 8,584,917 6,645,089

638,902 4,749,244

10,621

20,628,773

169,916 1,765,714

$ 22,564,403

$ 1,261,566 566,748

14,344,202

16,172,516

27,288

16,199,804

692,164

1,253,368 1,481,094 2,937,973

6,364,599

$ 22,564,403

866,513

340,474 1,515,398 3,710,941

6,433,326

$ 20,557,024

1,799,838

$ 20,557,024

$ 177,954 449,485

13,477,927

14,105,366

18,332

14,123,698

$ 5,330,422

8,597,984 667,220

4,149,672 11,888

18,757,186

December 31, 2016 2015

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GettingIn Touch

With The Work That Matters

© 2017, PPAI All Rights Reserved